Notes to the Consolidated Financial Statements
1. Basic information and principles of the report
The Geberit Group is an international company that focuses on the sanitary industry and, specifically, the areas of sanitary technology and bathroom ceramics. The Group's product range consists of the Sanitary Systems, Piping Systems and Sanitary Ceramics product areas. Worldwide, the vast majority of its products are sold through the wholesale channel. Geberit sells its products in 117 countries. The Group is present in 49 countries with its own sales employees.
The consolidated financial statements include Geberit AG and all companies under its control (“the Group” or “Geberit”). The Group eliminates all intra-group transactions as part of the Group consolidation process. A company is consolidated for the first time or deconsolidated from the date on which the Group exercises or loses control over the company.
In 2017, the value-at-risk (VaR) method was replaced by the cashflow-at-risk (CfaR) method to measure the currency risks as this method better reflects the Geberit business model. See Note 4.
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”).
The term “MCHF” in these consolidated financial statements refers to millions of Swiss francs, “MEUR” refers to millions of euros, “MGBP” refers to millions of British pounds sterling and “MUSD” refers to millions of US dollars. The term “shareholders” refers to the shareholders of Geberit AG.
Main sources of estimation uncertainty
The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period. Actual results can differ from estimates. Estimates and assumptions are continually reviewed and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the prevailing circumstances.
Important estimates and assumptions (with the related uncertainties) were primarily made in the following areas: